9 Meters Biopharma (NMTRQ) 10-K 14 Mar 18 2017 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 12, 2018	Jun. 30, 2017
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Entity Registrant Name	INNOVATE BIOPHARMACEUTICALS, INC.
Entity Central Index Key	1,551,986
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 3,878,345
Trading Symbol	INNT
Entity Common Stock, Shares Outstanding		25,691,680

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash	$ 426	$ 1,453
Accounts receivable, net of allowances of $271 and $253, respectively	90	856
Inventories	101	1,105
Prepaid expenses and other	46	619
Total current assets	663	4,033
Trademark	0	2,417
Deposits and other assets	14	14
Total assets	677	6,464
Current liabilities
Accounts payable	441	268
Accrued expenses	692	1,786
Customer refund	125	1,840
Due to related parties	33	44
Notes payable, net	1,359	38
Total current liabilities	2,650	3,976
Commitments and contingencies
Shareholders’ equity (deficit)
Preferred stock; 10,000,000 shares authorized — none issued	0	0
Common stock; $.0001 par value; 100,000,000 shares authorized; 1,436,360 and 778,501 shares issued and outstanding, respectively	1	1
Additional paid-in capital	38,039	34,575
Accumulated deficit	(40,013)	(32,088)
Total shareholders’ equity (deficit)	(1,973)	2,488
Total liabilities and shareholders’ equity (deficit)	$ 677	$ 6,464

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Allowance for Doubtful Accounts Receivable, Current	$ 271	$ 253
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	1,436,360	778,501
Common Stock, Shares, Outstanding	1,436,360	778,501

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net sales	$ 1,883	$ 4,065
Cost of goods sold	1,947	3,329
Gross profit (loss)	(64)	736
Operating expenses
Research and development	190	270
Selling and marketing	1,428	2,425
General and administrative	4,984	3,984
Trademark impairment	2,286	0
Total operating expenses	8,888	6,679
Operating loss	(8,952)	(5,943)
Other expenses (income)
Interest and finance expense	93	825
Gain of settlement of customer refund	(920)	0
Gain on extinguishment of debt	(200)	0
Gain on debt conversion	0	(557)
Total other expenses (income)	(1,027)	268
Loss before income taxes	(7,925)	(6,211)
Provision for income taxes	0	2
Net loss	(7,925)	(6,213)
Warrant tender offer inducement charge	896	0
Net loss attributable to common shareholders	$ (8,821)	$ (6,213)
Loss per share
Basic and diluted	$ (9.36)	$ (11.26)
Number of shares used in computation
Basic and diluted	942	552

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]
Balance at Dec. 31, 2015	$ (5,694)	$ 0	$ 0	$ 20,181	$ (25,875)
Balance (in shares) at Dec. 31, 2015		370,287	0
Issuance of preferred stock	2,393	$ 0	$ 0	2,393	0
Issuance of preferred stock (in shares)		0	280,243
Conversion of preferred to common stock	0	$ 0	$ 0	0	0
Conversion of preferred to common stock (in shares)		75,680	(280,243)
Exchange of debt for equity	3,520	$ 0	$ 0	3,520	0
Exchange of debt for equity (in shares)		78,224	0
Issuance of common stock and warrants in IPO net of issuance costs	6,843	$ 1	$ 0	6,842	0
Issuance of common stock and warrants in IPO net of issuance costs (in shares)		202,500	0
Issuance of restricted shares of common stock	0	$ 0	$ 0	0	0
Issuance of restricted shares of common stock (in shares)		3,325	0
Issuance of restricted shares of common stock, net of issuance costs	673	$ 0	$ 0	673	0
Issuance of restricted shares of common stock, net of issuance costs (in shares)		48,485	0
Conversion of related party debt into equity	0
Amortization of non-cash stock-based compensation	966	$ 0	$ 0	966	0
Net loss	(6,213)	0	0	0	(6,213)
Balance at Dec. 31, 2016	2,488	$ 1	$ 0	34,575	(32,088)
Balance (in shares) at Dec. 31, 2016		778,501	0
Issuance of common stock, net of issuance costs	419	$ 0	$ 0	419	0
Issuance of common stock, net of issuance costs (in share)		51,696	0
Issuance of common stock pursuant to stock option plan	0	$ 0	$ 0	0	0
Issuance of common stock pursuant to stock option plan (in shares)		103,061	0
Issuance of common stock pursuant to consulting arrangements	0	$ 0	$ 0	0	0
Issuance of common stock pursuant to consulting arrangements (in shares)		8,250	0
Warrants issued in connection with convertible notes	44	$ 0	$ 0	44	0
Issuance of common stock in connection with warrants exercise net of issuance costs	1,190	$ 0	$ 0	1,190	0
Issuance of common stock in connection with warrants exercise net of issuance costs (in shares)		292,569	0
Conversion of related party debt into equity	100	$ 0	$ 0	100	0
Conversion of related party debt into equity (in shares)		17,241	0
Issuance of common stock pursuant to debt payment agreement	600	$ 0	$ 0	600	0
Issuance of common stock pursuant to debt payment agreement (in shares)		185,042	0
Amortization of non-cash stock-based compensation	1,111	$ 0	$ 0	1,111	0
Net loss	(7,925)	0	0	0	(7,925)
Balance at Dec. 31, 2017	$ (1,973)	$ 1	$ 0	$ 38,039	$ (40,013)
Balance (in shares) at Dec. 31, 2017		1,436,360	0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Net loss	$ (7,925)	$ (6,213)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of stock-based compensation	1,111	966
Amortization of deferred debt issuance costs and debt discount	10	740
Amortization of trademark	131	131
Trademark impairment	2,286	0
Gain on settlement of customer refund	(920)	0
Gain on extinguishment of debt	(200)	0
Gain on debt conversion	0	(557)
Provision for doubtful accounts	20	153
Changes in operating assets and liabilities:
Accounts receivable	746	(365)
Inventories	1,004	(472)
Prepaid expenses and other	573	(478)
Accounts payable	173	(753)
Accrued expenses	(805)	(1,569)
Customer refund	(195)	(10)
Due to related party	(11)	0
Net cash used in operating activities	(4,002)	(8,427)
Cash flows from financing activities
Proceeds from issuance of preferred stock, net	0	2,393
Proceeds from issuance of common stock, net	419	673
Issuance of common stock in connection with warrants exercise	1,190	0
Proceeds from the issuance of convertible notes	1,346	0
Debt discount	(80)	0
Proceeds from issuance of IPO common stock and warrants	0	8,151
Prepaid IPO Costs	0	(689)
Proceeds from short-term loan - related party	100	0
Proceeds from issuance of bridge financing	0	406
Payments on bridge financing	0	(462)
Proceeds from credit facility	168	641
Payments on credit facility	(168)	(845)
Payments on trademark note payable	0	(450)
Deferred financing costs	0	(57)
Net cash provided by financing activities	2,975	9,761
Net increase (decrease) in cash	(1,027)	1,334
Cash, beginning of the year	1,453	119
Cash, end of the year	426	1,453
Cash paid during the year for:
Interest	6	59
Income taxes	0	2
Non-cash investing and financing activities:
Conversion of related party debt into equity	100	0
Warrants issued in connection with notes payable	44	0
Exchange of debt for equity	600	0
Reclassification of deferred IPO costs	0	619
IPO [Member]
Non-cash investing and financing activities:
Exchange of debt for equity	$ 0	$ 3,520

BUSINESS ACTIVITY AND SUMMARY O

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies [Text Block]	Organization: Public Offering 9,132,750 202,500 45.00 202,500 0.10 The Merger 60 6 As a result, current stockholders of the Company collectively own approximately 9% and Innovate stockholders collectively own approximately 91% of the combined company on a pro-forma basis, subject to adjustment based on the Company’s net cash balance and the relative capitalization of the two companies at closing, as described more fully in the Merger Agreement. On September 27, 2017, Monster Digital, Inc. transferred all of its businesses and assets, including all shares of SDJ Technologies, Inc., and those liabilities of the Company not assumed by Innovate pursuant to the Merger to NLM. The shares of NLM were spun off pro rata to holders of the Company’s common stock immediately prior to the Merger (the “Spin Off”). The Company filed a definitive proxy statement with the Securities and Exchange Commission on October 12, 2017 in order to obtain the required stockholder approval for the Merger and the Spin Off referenced above, as well as other related matters, and such approval was obtained and the Merger and Spin Off occurred on January 29, 2018. Immediately prior to the effective time of the Merger, the Company effected a reverse stock split at a ratio of one new share for every ten shares of its common stock outstanding. Under the terms of the Merger Agreement, the Company issued shares of its common stock to Innovate’s stockholders at an exchange ratio of 0.37813802 of a share of common stock (post reverse stock split) in exchange for each share of Innovate common stock outstanding at the time of the Merger. Innovate assumed $ 1.0 Basis of Presentation 271,000 253,000 net realizable value Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts for other financial instruments, which include cash, accounts receivable, accounts payable, notes payable and line of credit, approximate fair value based upon their short-term nature and maturity. Revenue is reduced by reserves for price protection, sales returns, allowances and rebates. The Company’s reserve estimates are based upon historical data as well as projections of sales, customer inventories, market conditions and current contractual sales terms. The Company’s total sales related reserves were $ 40,000 87,000 137,000 The Company uses a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more likely than not to be realized upon settlement. As of December 31, 2017, and 2016, there are no known uncertain tax positions. The Company policy is to classify the liability for unrecognized tax benefits as current to the extent that it is more likely than not to be realized upon settlement and to the extent that the Company anticipates payment (or receipt) of cash within one year. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in the tax provision. 40,000 118,000 154,416 99,916 50,500 4,000 1,683 1,384,500 415,991 202,500 140,501 72,990 10,108 38,000 Revenue from Contracts with Customers (Topic 606). In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17 , Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), In January 2017, the FASB issued ASU No. 2017-01, Business Combinations – Clarifying the Definition of a Business, Other pronouncements issued by the FASB with future effective dates are either not applicable or not significant to the consolidated financial statements of the Company.

GOING CONCERN

GOING CONCERN	12 Months Ended
	Dec. 31, 2017
Going Concern [Abstract]
Substantial Doubt about Going Concern [Text Block]	NOTE 2 — GOING CONCERN As of December 31, 2017, the Company has incurred cumulative net losses from its inception of approximately $ 40 8

DEBT FINANCING

DEBT FINANCING	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	NOTE 3 — DEBT FINANCING Credit Facility In June 2015, the Company secured an accounts receivable financing facility with Bay View Funding. The contract provides for maximum funding of $ 4 factoring fee of 1.35% for the first 30 days and .45% for each 10-day period thereafter that the financed receivable remains outstanding. Convertible Debt Financing On July 24, 2017, the Company entered into a Private Placement Engagement Agreement with WestPark Capital, Inc. for the purpose of raising up to $ 1,150,000 540,000 The Promissory Notes bear interest at 15% and are convertible to common stock concurrent with a potential merger (see Note 1) at the lesser of $7.50 per share or 75% of the average market value of the Company’s common stock for the five days preceding the consummation of such merger. Otherwise, the Notes become due March 31, 2019. For every $2.50 in note principal purchased, investors receive one warrant, exercisable for five years, to purchase shares of common stock at $20.00. 1,346,500 1,346,500 4.40 38,000 Promissory Notes From October 2015 through March 7, 2016, the Company issued promissory notes; the notes were due and payable at the earlier of one year from the date of issuance or the closing date of the Company’s initial public offering, bear an interest rate of 15 756,000 389,000 90 3,024,000 67,200 67,200 45.00 15 22.5 336,000 Notes payable consists of the following (in thousands): December 31, December 31, Note payable, convertible debt $ 38 $ 38 Promissory notes payable, net of $35 debt discount and debt issuance cost of $75 1,321 — Total $ 1,359 $ 38

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2017
Payables and Accruals [Abstract]
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	NOTE 4 — ACCRUED EXPENSES December 31, December 31, 2017 2016 Royalties $ 180 $ 125 Reserve for charges against sales 40 334 Accrued purchase orders — 158 Deferred gain — 445 Others 472 724 Total $ 692 $ 1,786

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 5 — STOCKHOLDERS’ EQUITY Common Stock Purchase Warrants 375,510 202,500 140,501 17,100 20.00 3,939 0.052 10,204 20.00 53,860 20.00 The Company filed Tender Offer Statements with the Securities and Exchange Commission on October 13, 2017, offering the Company’s warrant holders the opportunity to purchase one share of common stock for each warrant held at a price of $ 4.50 288,750 1,190,000 896,000 154,416 399,101 Restricted Shares 4,000 7,000 28,000 12,500 563,000 In November 2016, the Company entered into a securities purchase agreement providing for the issuance and sale to an investor of 33,333 15.00 500,000 446,000 8,000 11.50 15,151 16.50 250 226,000 In March 2017, the Company issued 22,600 15.00 339,000 307,000 4,748 11.50 11,600 11.50 133,400 112 On June 23, 2017, the Company issued 17,241 5.80 100,000 0.50 During the second quarter of 2017, the Company issued 8,750 56,150 1,500 1,250 2,500 3,500 Also, during the second quarter of 2017, the Company issued 9,500 22,000 45,000 16 During the third quarter of 2017, the Company issued 3,000 33,000 During the fourth quarter of 2017, the Company issued 7,000 10,000 76,188 41,113 22 Preferred Stock 3,000,000 with a purchase price of $1.00 per share and convertible into one share of the Company’s common stock and having an 8%, noncumulative dividend. 2,802,430 2.4 62,276 62,276 45.00 13,404

STOCK OPTIONS

STOCK OPTIONS	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 6 — STOCK OPTIONS In 2012, the Company’s Board of Directors approved the 2012 Omnibus Incentive Plan (the “Plan”) which allows for the granting of stock options, stock appreciation rights, awards of restricted stock and restricted stock units, stock bonuses and other cash and stock-based performance awards. A total of 97,035 60,000 4,610 4,505 77,895 On the effective date of the Offering, 11,133 3,000 10,133 1,000 500 4,500 29,000 17,500 266,000 Also granted on the effective date of the Offering were previously approved options to acquire 8,650 45.00 6,967 In August 2016, pursuant to a services agreement and outside of the Plan, the Company granted options to acquire 3,814 The Company follows the provisions of ASC Topic 718, Compensations – Stock Compensation Option Date Options Exercise Estimated Intrinsic August 2016 600 $ 50.00 $ 30.00 None August 2016 723 $ 70.00 $ 30.00 None August 2016 999 $ 90.00 $ 30.00 None August 2016 1,492 $ 110.00 $ 30.00 None The Company utilizes the Black-Scholes valuation method to value stock options and recognizes compensation expense over the vesting period. The expected life represents the period that the Company’s stock-based compensation awards are expected to be outstanding. The Company uses a simplified method provided in Securities and Exchange Commission Staff Accounting Bulletin No. 110 which averages an award’s weighted average vesting period and contractual term for “plain vanilla” share options. The expected volatility was estimated by analyzing the historic volatility of similar public companies. No dividend payouts were assumed as the Company has not historically paid, and is not anticipating to pay, dividends in the foreseeable future. The risk-free rate of return reflects the weighted average interest rate offered for U.S. treasury rates over the expected life of the options. A summary of significant assumptions used to estimate the fair value of the stock options granted in 2016 is as follows: Weighted average fair value of options granted $17.00 Expected term (years) 6.0 to 10.0 Risk-free interest rate 1.21% to 1.51% Volatility 45.4% Dividend yield None Number of Weighted Weighted Aggregate Options outstanding January 1, 2016 7,104 297.10 9.50 $ — Granted 12,464 297.10 9.83 — Forfeited (13,275) — — — Options outstanding December 31, 2016 6,293 $ 45.00 9.50 — Granted — — — — Forfeited (4,610) — — — Outstanding at December 31, 2017 1,683 $ 45.00 8.50 $ — The following table summarizes restricted share activity for the year ended December 31, 2017: Number of Weighted Outstanding January 1, 2017 12,847 $ 38.70 Granted 119,410 11.50 Vested (65,257) 12.00 Forfeited (7,000) 30.60 Outstanding at December 31, 2017 60,000 $ 13.80 The Company recorded non-cash stock-based compensation related to stock options and restricted stock of $ 1,111 966,000 As of December 31, 2017, the total compensation expense related to unvested options and restricted stock not yet recognized totaled approximately $ 238,000 7

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 7 — RELATED PARTY TRANSACTIONS Borrowings 24,000 346,100 7,691 On June 7, 2017, GSB Holdings, Inc., a family owned company of David Clarke, the Company’s then CEO and Chairman of the Board, loaned the Company $ 100,000 10,204 20.00 17,241 5.80 The issuance price was $0.50 greater than the closing price Restricted Shares 15,152 16.50 In March 2017, the Company issued 7,000 15.00 10,000 2,500

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	2017 2016 Deferred tax assets Net operating losses $ 9,525 $ 11,473 Accrued warranty 12 50 Other accrued expenses 948 484 Total deferred tax assets 10,485 12,007 Valuation allowance (10,485) (12,007) Net deferred tax asset $ — $ — The ultimate realization of the deferred tax asset is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. As of December 31, 2017, the state and federal net operating loss carryforwards are approximately $ 34,258,000 34,230,000 100 Net operating loss carryforwards expire between the years 2029 and 2036. 2017 2016 % of pre-tax % of pre-tax Federal tax (34.0) % (34.0) % State tax, net (7.9) (4.9) Change in federal tax rate 56.1 — Change in valuation allowance (19.2) 33.3 Miscellaneous 5.0 5.6 0.0 % 0.0 % Management is not aware of any uncertain tax positions and does not expect the total amount of recognized tax benefits to change significantly in the next twelve months. On December 22, 2017, the U.S. Government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “TCJA”). The TJCA makes broad changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S federal corporate tax rate from 35 21 The TCJA reduces the corporate tax rate to 21%, effective January 1, 2018. The accounting for this portion of the TCJA has caused a reduction to the net deferred tax assets before valuation allowance of $ 4.4

CUSTOMER AND VENDOR CONCENTRATI

CUSTOMER AND VENDOR CONCENTRATIONS	12 Months Ended
	Dec. 31, 2017
Risks and Uncertainties [Abstract]
Concentration Risk Disclosure [Text Block]	NOTE 9 — CUSTOMER AND VENDOR CONCENTRATIONS Customers Approximately 17 12 12 11 189,000 Approximately 34 8 7 433,000 Vendors Approximately 47 Approximately 31 6,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 10 — COMMITMENTS AND CONTINGENCIES Royalty The Company entered into the initial trademark license agreement with Monster, Inc. (formerly Monster Cable Products, Inc.) effective July 7, 2010. In 2012, the agreement was amended giving the Company exclusive rights to utilize the name “Monster Digital” on memory products for a period of 25 th The royalty schedule became effective in August 2011 and was further amended in April 2012. As amended, royalties under this contract are as follows: • Years 1 (2012) and 2: Royalties on all sales excluding sales to Monster, Inc. at a rate of four (4) percent, with no minimum. • Years 3 through 6: Minimum royalty payments of $ 50,000 • Years 7 through 10: Minimum royalty payments of $ 125,000 • Years 11 through 15: Minimum royalty payments of $ 187,500 • Years 16 through 25: Minimum royalty payments of $ 250,000 Effective July 1, 2014, the royalty rate on certain products was reduced from 4 2 For the years ended December 31, 2017 and 2016, royalty expense amounted to approximately $ 180,000 371,000 180,000 Operating Leases The Company occupied executive offices in Simi Valley, CA pursuant to a lease through January 31, 2018. Effective as of March 31, 2017, the Company terminated the lease by mutually accepted and favorable terms with the lessor. Effective April 1, 2017, the Company entered into a one-year lease for warehouse space in Ontario, CA. In January 2018 the Company was granted a lease termination with a return of deposit. Customer payment agreements In July 2015, the Company entered into an agreement with a customer under which the Company will pay the customer a total of $ 835,000 Under the terms of the agreement, there is no interest and the Company was required to make 12 monthly payments of $65,000 beginning in August 2015, and one final payment of $65,000 in August 2016. There is a balance owed of $57,000 at December 31, 2017, such balance attributed to the Spin Off. In January 2017, the Company entered into an agreement with a customer under which the Company settled an amount due of $ 1.84 1.5 341,000 68,000 250,000 600,000 Legal matters The Company is subject to certain legal proceedings and claims arising in connection with the normal course of its business. On February 16, 2016, the Company received a letter from GoPro, Inc., or GoPro, alleging that the Company infringes on at least five U.S. patents held by GoPro, and requesting that confirm in writing that the Company will permanently cease the sale and distribution of its Villain camera, along with any camera accessories, including the waterproof camera case and standard housing. The five patents specifically identified by GoPro in the letter were U.S. Patent No. D710,921: camera housing design, U.S. Patent No. D702,747: camera housing design, U.S. Patent No. D740,875: camera housing design, U.S. Patent No. D737,879: camera design and U.S. Patent No. 721,935: camera design. Based upon the Company’s preliminary review of these patents, the Company believes it has some defenses to GoPro’s allegations, although there can be no assurance that the Company would be successful in defending against these allegations or reaching a business resolution that is satisfactory to the Company. In addition, the Company began marketing and selling the camera under the name “Monster Vision” and phasing out the Villain” name. The Company had no correspondence from GoPro after the Company instituted the name change. The Company has subsequently discontinued new sales of action sports cameras. The supplier of the Company’s Villain camera has contractually represented and warranted that it owns or has paid royalties to any and all intellectual property, designs, software, hardware, packaging, components, manuals and any other portion, part or element that is or may be subject to the Villain and the parts and accessories thereof sourced by the supplier. This supplier has contractually agreed to pay any claims, damages, or costs that the Company suffers as a result of the patent infringement or a violation of international, U.S. or state laws or regulations as detailed in the prior sentence. On September 15, 2017, a putative class action complaint (the “ Class Complaint”) was filed in the United States District Court for the Central District of California against the Company, David H. Clarke, the Company’s then Chief Executive Officer and then a member of the Company’s Board of Directors (“Clarke”), Jonathan Clark (“Clark”), the Company’s then Interim President and then a member of the Company’s Board of Directors, Robert Machinist (“Machinist”), then a member of the Registrant’s Board of Directors, Christopher Miner (“Miner”), then a member of the Company’s Board of Directors and Steven Barre (“Barre”), then a member of the Company’s Board of Directors (Messrs. Clarke, Clark, Machinist, Miner and Barre are hereinafter referred to as the “Individual Defendants”). The Class Complaint sought class status on behalf of all of the Company’s public stockholders and alleged violations by the Company and the Individual Defendants of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and the rules promulgated thereunder, and secondary control person liability against the Individual Defendants under Section 20(a) of the Exchange Act primarily related to the Merger. The Class Complaint sought to enjoin the Company and the Individual Defendants from proceeding with an anticipated stockholder vote on the Merger or consummating the Merger, unless and until the Company disclosed certain alleged material information which the Class Complaint alleges has been omitted from the Company’s proxy statement or in the event the Merger was consummated, to recover an unspecified amount of damages resulting from the Individual Defendants’ alleged violations Sections 14(a) and 20(a) of the Exchange Act. The Class Complaint was withdrawn in November 2017.

BUSINESS ACTIVITY AND SUMMARY17

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Public Offering [Policy Text Block]	Public Offering 9,132,750 202,500 45.00 202,500 0.10
Business Combinations Policy [Policy Text Block]	The Merger 60 6 As a result, current stockholders of the Company collectively own approximately 9% and Innovate stockholders collectively own approximately 91% of the combined company on a pro-forma basis, subject to adjustment based on the Company’s net cash balance and the relative capitalization of the two companies at closing, as described more fully in the Merger Agreement. On September 27, 2017, Monster Digital, Inc. transferred all of its businesses and assets, including all shares of SDJ Technologies, Inc., and those liabilities of the Company not assumed by Innovate pursuant to the Merger to NLM. The shares of NLM were spun off pro rata to holders of the Company’s common stock immediately prior to the Merger (the “Spin Off”). The Company filed a definitive proxy statement with the Securities and Exchange Commission on October 12, 2017 in order to obtain the required stockholder approval for the Merger and the Spin Off referenced above, as well as other related matters, and such approval was obtained and the Merger and Spin Off occurred on January 29, 2018. Immediately prior to the effective time of the Merger, the Company effected a reverse stock split at a ratio of one new share for every ten shares of its common stock outstanding. Under the terms of the Merger Agreement, the Company issued shares of its common stock to Innovate’s stockholders at an exchange ratio of 0.37813802 of a share of common stock (post reverse stock split) in exchange for each share of Innovate common stock outstanding at the time of the Merger. Innovate assumed $ 1.0
Reverse Stock Split [Policy Text Block]	Reverse Stock Split
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation
Consolidation, Policy [Policy Text Block]	Principles of Consolidation
Use of Estimates, Policy [Policy Text Block]	Use of Estimates
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Cash
Receivables, Policy [Policy Text Block]	Accounts Receivable 271,000 253,000
Inventory, Policy [Policy Text Block]	Inventories net realizable value
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts for other financial instruments, which include cash, accounts receivable, accounts payable, notes payable and line of credit, approximate fair value based upon their short-term nature and maturity.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Revenue is reduced by reserves for price protection, sales returns, allowances and rebates. The Company’s reserve estimates are based upon historical data as well as projections of sales, customer inventories, market conditions and current contractual sales terms. The Company’s total sales related reserves were $ 40,000
Shipping and Handling Cost, Policy [Policy Text Block]	Shipping and Handling Costs 87,000 137,000
Income Tax, Policy [Policy Text Block]	Income Taxes The Company uses a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more likely than not to be realized upon settlement. As of December 31, 2017, and 2016, there are no known uncertain tax positions. The Company policy is to classify the liability for unrecognized tax benefits as current to the extent that it is more likely than not to be realized upon settlement and to the extent that the Company anticipates payment (or receipt) of cash within one year. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in the tax provision.
Guarantees, Indemnifications and Warranties Policies [Policy Text Block]	Product Warranty 40,000 118,000
Research and Development Expense, Policy [Policy Text Block]	Research and Development:
Earnings Per Share, Policy [Policy Text Block]	Earnings (Loss) per Share 154,416 99,916 50,500 4,000 1,683 1,384,500 415,991 202,500 140,501 72,990 10,108 38,000
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Pronouncements Revenue from Contracts with Customers (Topic 606). In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17 , Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), In January 2017, the FASB issued ASU No. 2017-01, Business Combinations – Clarifying the Definition of a Business, Other pronouncements issued by the FASB with future effective dates are either not applicable or not significant to the consolidated financial statements of the Company.

DEBT FINANCING (Tables)

DEBT FINANCING (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule of Debt [Table Text Block]	Notes payable consists of the following (in thousands): December 31, December 31, Note payable, convertible debt $ 38 $ 38 Promissory notes payable, net of $35 debt discount and debt issuance cost of $75 1,321 — Total $ 1,359 $ 38

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2017
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued expenses consist of the following (in thousands): December 31, December 31, 2017 2016 Royalties $ 180 $ 125 Reserve for charges against sales 40 334 Accrued purchase orders — 158 Deferred gain — 445 Others 472 724 Total $ 692 $ 1,786

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Activity [Table Text Block]	Option Date Options Exercise Estimated Intrinsic August 2016 600 $ 50.00 $ 30.00 None August 2016 723 $ 70.00 $ 30.00 None August 2016 999 $ 90.00 $ 30.00 None August 2016 1,492 $ 110.00 $ 30.00 None A summary of option activity for the Plan as of December 31, 2017 is represented as follows: Number of Weighted Weighted Aggregate Options outstanding January 1, 2016 7,104 297.10 9.50 $ — Granted 12,464 297.10 9.83 — Forfeited (13,275) — — — Options outstanding December 31, 2016 6,293 $ 45.00 9.50 — Granted — — — — Forfeited (4,610) — — — Outstanding at December 31, 2017 1,683 $ 45.00 8.50 $ —
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	A summary of significant assumptions used to estimate the fair value of the stock options granted in 2016 is as follows: Weighted average fair value of options granted $17.00 Expected term (years) 6.0 to 10.0 Risk-free interest rate 1.21% to 1.51% Volatility 45.4% Dividend yield None
Nonvested Restricted Stock Shares Activity [Table Text Block]	The following table summarizes restricted share activity for the year ended December 31, 2017: Number of Weighted Outstanding January 1, 2017 12,847 $ 38.70 Granted 119,410 11.50 Vested (65,257) 12.00 Forfeited (7,000) 30.60 Outstanding at December 31, 2017 60,000 $ 13.80

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	The deferred tax asset as of December 31, 2017 and 2016 is comprised of the following (dollars in thousands): 2017 2016 Deferred tax assets Net operating losses $ 9,525 $ 11,473 Accrued warranty 12 50 Other accrued expenses 948 484 Total deferred tax assets 10,485 12,007 Valuation allowance (10,485) (12,007) Net deferred tax asset $ — $ —
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The reconciliation of the U.S. statutory rate with the Company’s effective test rate is summarized as follows: 2017 2016 % of pre-tax % of pre-tax Federal tax (34.0) % (34.0) % State tax, net (7.9) (4.9) Change in federal tax rate 56.1 — Change in valuation allowance (19.2) 33.3 Miscellaneous 5.0 5.6 0.0 % 0.0 %

BUSINESS ACTIVITY AND SUMMARY22

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	Jul. 03, 2017	Jul. 13, 2016	Apr. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Jun. 23, 2017
Significant Accounting Policies Disclosure [Line Items]
Stock Issued During Period, Shares, New Issues		202,500	11,600
Shares Issued, Price Per Share		$ 45	$ 11.50
Warrants Issued During Period Value		$ 202,500
Warrants Issued Price Per Share		$ 0.10
Allowance for Doubtful Accounts Receivable				$ 271,000	$ 253,000
Shipping, Handling and Transportation Costs				87,000	137,000
Extended Product Warranty Accrual, Current				$ 40,000	$ 118,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				154,416	415,991
Stockholders' Equity, Reverse Stock Split				Reverse Stock Split: Immediately preceding the Merger, Monster Digital shares of common stock were subject to a one-for ten reverse stock split. All share and per share information in these consolidated financial statements, except for par value and authorized shares, have been amended to reflect the reverse stock split.
Reserve for Sales Returns				$ 40,000
Innovates Business [Member]
Significant Accounting Policies Disclosure [Line Items]
Business Acquisition, Transaction Costs	$ 6,000,000
Innovate Biopharmaceuticals, Inc. [Member]
Significant Accounting Policies Disclosure [Line Items]
Business Acquisition, Pro Forma Information, Description	As a result, current stockholders of the Company collectively own approximately 9% and Innovate stockholders collectively own approximately 91% of the combined company on a pro-forma basis, subject to adjustment based on the Companys net cash balance and the relative capitalization of the two companies at closing, as described more fully in the Merger Agreement.
Business Acquisition, Transaction Costs	$ 60,000,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities				$ 1,000,000
Offering Common Stock [Member]
Significant Accounting Policies Disclosure [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				99,916	202,500
Preferred Stock and Bridge Loan [Member]
Significant Accounting Policies Disclosure [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				50,500	140,501
Other Warrants [Member]
Significant Accounting Policies Disclosure [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				4,000	72,990
Convertible Notes Payable [Member]
Significant Accounting Policies Disclosure [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				1,384,500	38,000
Proceeds From The Issuances Initial Public Offering		$ 9,132,750
Common Stock [Member]
Significant Accounting Policies Disclosure [Line Items]
Shares Issued, Price Per Share						$ 5.80
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				1,683	10,108

GOING CONCERN (Details Textual)

GOING CONCERN (Details Textual) $ in Millions	Dec. 31, 2017USD ($)
Going Concern [Line Items]
Capital Deficit	$ 8
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 40

DEBT FINANCING (Details)

DEBT FINANCING (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Note payable, convertible debt	$ 38	$ 38
Promissory notes payable, net of $35 debt discount and debt issuance cost of $75	1,321	0
Total	$ 1,359	$ 38

DEBT FINANCING (Details Textual

DEBT FINANCING (Details Textual) - USD ($)	Mar. 07, 2016	Jul. 24, 2017	Jul. 31, 2016	Jun. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Apr. 30, 2017	Jul. 13, 2016
Short-term Debt [Line Items]
Convertible notes payable					$ 1,346,000	$ 0
Notes Payable, Current					1,359,000	38,000
Debt Instrument, Interest Rate, Stated Percentage	15.00%
Loan Processing Fee Each Dollar	$ 0.225
Amortization of Debt Issuance Costs and Discounts					10,000	740,000
Shares Issued, Price Per Share								$ 11.50	$ 45
Bridge Loan					35,000	75,000
Convertible Debt					$ 1,346,500
Debt Instrument, Face Amount		$ 1,150,000
Debt Conversion, Description		The Promissory Notes bear interest at 15% and are convertible to common stock concurrent with a potential merger (see Note 1) at the lesser of $7.50 per share or 75% of the average market value of the Companys common stock for the five days preceding the consummation of such merger. Otherwise, the Notes become due March 31, 2019. For every $2.50 in note principal purchased, investors receive one warrant, exercisable for five years, to purchase shares of common stock at $20.00.
Debt Instrument, Convertible, Conversion Price					$ 4.40
Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Notes Payable, Current					$ 38,000	38,000
Loans Payable [Member]
Short-term Debt [Line Items]
Debt Conversion, Converted Instrument, Shares Issued			67,200
Loan Processing Fee							$ 756,000
Amortization of Debt Issuance Costs and Discounts						$ 389,000
Percentage of Outstanding Promissory Notes			90.00%
Shares Issued, Price Per Share			$ 45
Conversion of Debt, Percentage of Accrued Interest Waived			15.00%
Origination of Loan to Purchase Common Stock			$ 336,000
Payments to Acquire Intangible Assets			$ 3,024,000
Conversion of Debt, Percentage of Origination Fees Waived			22.50%
Debt Conversion, Converted Instrument, Warrants or Options Issued			67,200
Convertible Debt [Member]
Short-term Debt [Line Items]
Convertible notes payable		$ 540,000			$ 1,346,500
Bay View Funding [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				$ 4,000,000
Line of Credit Facility, Commitment Fee Description				factoring fee of 1.35% for the first 30 days and .45% for each10-day period thereafter that the financed receivable remains outstanding.

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Schedule Of Accrued Liabilities [Line Items]
Royalties	$ 180	$ 125
Reserve for charges against sales	40	334
Accrued purchase orders	0	158
Deferred gain	0	445
Others	472	724
Total	$ 692	$ 1,786

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual) - USD ($)

Jul. 13, 2016

Mar. 07, 2016

Nov. 30, 2017

Jul. 31, 2017

Jun. 23, 2017

May 31, 2017

Apr. 30, 2017

Mar. 31, 2017

Jan. 31, 2017

Nov. 30, 2016

Aug. 31, 2016

Jul. 31, 2016

Jun. 30, 2016

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Dec. 31, 2017

Dec. 31, 2016

Oct. 13, 2017

Aug. 31, 2017

Apr. 30, 2016

Mar. 31, 2016

Dec. 31, 2012

Class of Stock [Line Items]

Class of Warrant or Right, Number of Securities Called by Warrants or Rights

375,510

Stock Issued During Period, Shares, New Issues

202,500

11,600

Proceeds from Issuance of Common Stock

$ 112,000

$ 419,000

$ 673,000

Convertible Preferred Stock, Terms of Conversion

with a purchase price of $1.00 per share and convertible into one share of the Companys common stock and having an 8%, noncumulative dividend.

Shares Issued, Price Per Share

$ 45

$ 11.50

Stock Issued During Period, Value, Restricted Stock Award, Gross

673,000

Convertible Preferred Stock Warrants Issued upon Conversion

62,276

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized

97,035

Share-based Compensation

1,111,000

$ 966,000

Stock Issued During Period, Value, New Issues

$ 133,400

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period

4,500

Share Price

$ 4.50

Number Of Warrants Exercised

288,750

Proceeds from Warrant Exercises

$ 1,190,000

Warrant Conversions, Inducements

896,000

convertible promissory notes [Member]

Class of Stock [Line Items]

Class of Warrant or Right, Outstanding

53,860

Shares Issued, Price Per Share

$ 20

Conversion Debt [Member]

Class of Stock [Line Items]

Class of Warrant or Right, Outstanding

10,204

Shares Issued, Price Per Share

$ 20

Common Stock [Member]

Class of Stock [Line Items]

Class of Warrant or Right, Outstanding

17,241

3,939

Stock Issued During Period, Shares, Restricted Stock Award, Gross

48,485

Shares Issued, Price Per Share

$ 5.80

Stock Issued During Period, Value, Restricted Stock Award, Gross

$ 0

Conversion of Stock, Shares Issued

75,680

Exercised Price Per Share

$ 0.052

Proceeds from Related Party Debt

$ 100,000

Common Stock [Member] | Maximum [Member]

Class of Stock [Line Items]

Shares Issued, Price Per Share

$ 0.50

Restricted Stock [Member]

Class of Stock [Line Items]

Class of Warrant or Right, Outstanding

17,100

17,100

Stock Issued During Period, Shares, Restricted Stock Award, Gross

4,000

Restricted Stock or Unit Expense

$ 76,188

$ 56,150

Shares Issued, Price Per Share

$ 20

$ 20

Share-based Compensation

$ 7,000

$ 28,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period

29,000

8,750

65,257

Stock Based Compensation To Be Amortized

$ 41,113

$ 45,000

Stock Based Compensation To Be Amortized Term

22 months

16 months

Restricted Stock [Member] | Product Marketing [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

1,500

Restricted Stock [Member] | Employee Severance Agreement [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

1,250

Restricted Stock [Member] | Investor Relations Firm [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

2,500

Restricted Stock [Member] | Special Committee Of Board Of Directors [Member]

Class of Stock [Line Items]

Restricted Stock or Unit Expense

$ 3,500

Restricted Stock [Member] | Employees [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

9,500

Restricted Stock or Unit Expense

$ 22,000

Series A Preferred Stock [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, New Issues

13,404

Convertible Preferred Stock, Shares Issued upon Conversion

62,276

3,000,000

Sale of Stock, Number of Shares Issued in Transaction

2,802,430

Proceeds from Issuance of Private Placement

$ 2,400,000

Shares Issued, Price Per Share

$ 45

Jawahar Tandon [Member] | Restricted Stock [Member]

Class of Stock [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized

12,500

Share-based Compensation

$ 563,000

IPO [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, New Issues

22,600

202,500

Conversion of Stock, Shares Issued

140,501

Private Placement [Member]

Class of Stock [Line Items]

Proceeds from Issuance of Common Stock

$ 307,000

Shares Issued, Price Per Share

$ 15

Stock Issued During Period, Value, New Issues

$ 339,000

Private Placement [Member] | Board of Directors Chairman [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

15,151

Proceeds from Issuance of Private Placement

$ 226,000

Shares Issued, Price Per Share

$ 16.50

Stock Issued During Period, Value, Restricted Stock Award, Gross

$ 250,000

Private Placement [Member] | Investor [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, New Issues

4,748

8,000

33,333

Proceeds from Issuance of Private Placement

$ 446,000

Shares Issued, Price Per Share

$ 11.50

$ 11.50

$ 15

Stock Issued During Period, Value, New Issues

$ 500,000

Chief Executive Officer [Member]

Class of Stock [Line Items]

Class of Warrant or Right, Outstanding

154,416

154,416

399,101

Independent Employees [Member] | Restricted Stock [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

3,000

Restricted Stock or Unit Expense

$ 33,000

Three Officers and One Board [Member] | Restricted Stock [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

7,000

Chairman and Chief Executive Officer [Member] | Restricted Stock [Member]

Class of Stock [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

10,000

STOCK OPTIONS (Details)

STOCK OPTIONS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Granted		12,464
Exercise Price	$ 0	$ 297.1
Estimated Fair Value of Underlying Stock		$ 17
August 2016 One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Granted	600
Exercise Price	$ 50
Estimated Fair Value of Underlying Stock	$ 30
August 2016 Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Granted	723
Exercise Price	$ 70
Estimated Fair Value of Underlying Stock	$ 30
August 2016 Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Granted	999
Exercise Price	$ 90
Estimated Fair Value of Underlying Stock	$ 30
August 2016 Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Granted	1,492
Exercise Price	$ 110
Estimated Fair Value of Underlying Stock	$ 30

STOCK OPTIONS (Details 1)

STOCK OPTIONS (Details 1)	12 Months Ended
	Dec. 31, 2016$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of options granted	$ 17
Volatility	45.40%
Dividend yield	0.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	10 years
Risk-free interest rate	1.51%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 years
Risk-free interest rate	1.21%

STOCK OPTIONS (Details 2)

STOCK OPTIONS (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options outstanding, Beginning	6,293	7,104
Number of Options, Granted		12,464
Number of Options, Forfeited	(4,610)	(13,275)
Number of Options outstanding, Ending	1,683	6,293	7,104
Weighted Average Exercise Price, Beginning	$ 45	$ 297.1
Weighted Average Exercise Price, Granted	0	297.1
Weighted Average Exercise Price, Forfeited	0	0
Weighted Average Exercise Price, Ending	$ 45	$ 45	$ 297.1
Weighted Average Remaining Contract Term (in years)	8 years 6 months	9 years 6 months	9 years 6 months
Weighted Average Remaining Contract Term, Granted (in years)	0 years	9 years 9 months 29 days
Aggregate Intrinsic Value End of the Period	$ 0	$ 0	$ 0

STOCK OPTIONS (Details 3)

STOCK OPTIONS (Details 3) - $ / shares	1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2017	Jun. 30, 2017	Dec. 31, 2017
Number of Shares, Granted			6,967
Number of Shares, Vested	(4,500)
Restricted Stock [Member]
Number of Shares, Outstanding	12,847		12,847
Number of Shares, Granted			119,410
Number of Shares, Vested	(29,000)	(8,750)	(65,257)
Number of Shares, Forfeited			(7,000)
Number of Shares, Outstanding			60,000
Weighted Average Grant Date Fair Value, Outstanding	$ 38.7		$ 38.7
Weighted Average Grant Date Fair Value, Granted			11.5
Weighted Average Grant Date Fair Value, Vested			12
Weighted Average Grant Date Fair Value, Forfeited			30.6
Weighted Average Grant Date Fair Value, Outstanding			$ 13.8

STOCK OPTIONS (Details Textual)

STOCK OPTIONS (Details Textual) - USD ($)	1 Months Ended				3 Months Ended	12 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Aug. 31, 2016	May 31, 2016	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized								97,035
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized				60,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period						4,610	13,275
Share-based Compensation						$ 1,111,000	$ 966,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross							12,464
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price						$ 0	$ 297.1
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						6,967
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		4,500
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant						4,505	77,895
David Olert [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						8,650
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price						$ 45
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		17,500
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures		$ 266,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation			$ 7,000			$ 28,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						7 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		3,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						119,410
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options						$ 238,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period						7,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		29,000			8,750	65,257
Restricted Stock [Member] | Four Executives [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						11,133
Restricted Stock [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	10,133
Restricted Stock [Member] | Director [Member] | Omnibus Incentive Plan 2012 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		500				1,000
Investor [Member] | Omnibus Incentive Plan 2012 [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			3,814

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)	Jun. 07, 2017	Jan. 31, 2018	Nov. 30, 2017	Jun. 23, 2017	Mar. 31, 2017	Nov. 30, 2016	Jun. 30, 2016	Sep. 30, 2016	Dec. 31, 2017	Apr. 30, 2017	Jul. 13, 2016
Related Party Transaction [Line Items]
Shares Issued, Price Per Share										$ 11.50	$ 45
Debt Instrument, Convertible, Conversion Price									$ 4.40
Shares Issuance Price Description				The issuance price was $0.50 greater than the closing price
Private Placement [Member]
Related Party Transaction [Line Items]
Shares Issued, Price Per Share					$ 15
GSB Holdings, Inc [Member]
Related Party Transaction [Line Items]
Debt Conversion, Converted Instrument, Warrants or Options Issued	10,204
Debt Conversion, Converted Instrument, Shares Issued				17,241
Proceeds from Notes Payable	$ 100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 20
Debt Instrument, Convertible, Conversion Price				$ 5.80
Board of Directors Chairman [Member] | Private Placement [Member]
Related Party Transaction [Line Items]
Shares Issued, Price Per Share					$ 15	$ 16.50
Stock Issued During Period, Shares, Restricted Stock Award, Gross			10,000		7,000	15,152
Subsequent Event [Member] | Board of Directors Chairman [Member] | Private Placement [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		2,500
Tandon Enterprises, Inc. [Member]
Related Party Transaction [Line Items]
Proceeds from Related Party Debt								$ 24,000
Debt Conversion, Converted Instrument, Shares Issued							346,100
Tandon Enterprises, Inc. [Member] | Common Stock And Warrants [Member]
Related Party Transaction [Line Items]
Debt Conversion, Converted Instrument, Shares Issued							7,691

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets
Net operating losses	$ 9,525	$ 11,473
Accrued warranty	12	50
Other accrued expenses	948	484
Total deferred tax assets	10,485	12,007
Valuation allowance	(10,485)	(12,007)
Net deferred tax asset	$ 0	$ 0

INCOME TAXES (Details 1)

INCOME TAXES (Details 1)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Federal tax	(34.00%)	(34.00%)
State tax, net	(7.90%)	(4.90%)
Change in federal tax rate	56.10%	0.00%
Change in valuation allowance	(19.20%)	33.30%
Miscellaneous	5.00%	5.60%
Effective Income Tax Rate Reconciliation	0.00%	0.00%

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes [Line Items]
Deferred Tax Assets Valuation Allowance Percentage		100.00%
Operating Loss Carryforwards, Expiration Period		Net operating loss carryforwards expire between the years 2029 and 2036.
Income Tax Expense (Benefit)		$ 0	$ 2,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		34.00%	34.00%
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount		$ (4,400,000)
Scenario, Plan [Member]
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%
Maximum [Member]
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		35.00%
State and Local Jurisdiction [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards		$ 34,258,000
Foreign Tax Authority [Member]
Income Taxes [Line Items]
Operating Loss Carryforwards		$ 34,230,000

CUSTOMER AND VENDOR CONCENTRA37

CUSTOMER AND VENDOR CONCENTRATIONS (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Concentration Risk [Line Items]
Accounts Payable, Current	$ 441,000	$ 268,000
Accounts Receivable, Net, Current	$ 90,000	$ 856,000
Sales Revenue, Net [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	17.00%	34.00%
Sales Revenue, Net [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	12.00%	8.00%
Sales Revenue, Net [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	12.00%	7.00%
Sales Revenue, Net [Member] | Customer Four [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	11.00%
One Vendors [Member]
Concentration Risk [Line Items]
Accounts Payable, Current		$ 6,000
One Vendors [Member] | Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	47.00%	31.00%
Three Customers [Member]
Concentration Risk [Line Items]
Accounts Receivable, Net, Current		$ 433,000
Four Customers [Member]
Concentration Risk [Line Items]
Accounts Receivable, Net, Current	$ 189,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Jan. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2012	Sep. 30, 2017	Jul. 31, 2015
Commitments And Contingencies [Line Items]
Minimum royalty payments, Years Three through Six						$ 50,000
Minimum royalty payments, Years Seven through Ten						125,000
Minimum royalty payments, Eleven through Fifteen						187,500
Minimum royalty payments, Years Sixteen through Twenty-five						$ 250,000
Royalty rate				2.00%	4.00%
Royalty Expense		$ 180,000	$ 371,000
Other Commitments, Description		Under the terms of the agreement, there is no interest and the Company was required to make 12 monthly payments of $65,000 beginning in August 2015, and one final payment of $65,000 in August 2016. There is a balance owed of $57,000 at December 31, 2017, such balance attributed to the Spin Off.
Accrued Royalties, Current		$ 180,000	125,000
Loss Contingency, One-Time Payment, Amount							$ 600,000
Gain (Loss) on Extinguishment of Debt		200,000	0
Customer Refundable Fees, Revenue Recognized		920,000	0
Impairment of Intangible Assets, Finite-lived		$ 2,286,000	$ 0
Customer Payment Agreements July 2015 [Member]
Commitments And Contingencies [Line Items]
Other Commitment								$ 835,000
Customer Payment Agreements January 2017 [Member]
Commitments And Contingencies [Line Items]
Other Commitment	$ 1,840,000
Loss Contingency Accrual, Payments	250,000
Loss Contingency Accrual, Settlement Amount	1,500,000
Loss Contingency Accrual, Deferred Gain Loss On Settlement	341,000
Loss Contingency Accrual, Gain Loss On Settlement	$ 68,000
Trademarks [Member]
Commitments And Contingencies [Line Items]
Finite-Lived Intangible Asset, Useful Life						25 years